By 2015 Saudi Arabia's ethylene and propylene capacities will rise to 16.52mn tpa and 6.55mn tpa

September 21/2011

(Zawya) -- By 2015, BMI forecasts
ethylene and propylene capacities will rise to 16.52mn tpa and 6.55mn tpa
respectively, with Saudi Kayan’s commercial operation in 2011 set to contribute
most to the increase, according to BMI’s latest Saudi Arabia Petrochemicals
Report. Compared with 2010, total PE capacity will rise 20% to 8.86mn tpa, PP
will rise 11% and PS, PET andPVC capacities will remain unchanged. Ethylene
capacity in 2015 is forecasted to be more than double that of 2008 levels, with
Jubail and Yanbu the focus of petrochemicals developments.

Technical problems at Sahara Petrochemicals’ Al-Waha plant and at Petro
Rabigh have adverselyaffected PP output. The temporary closures did not
affect supplies, which were maintained throughinventories, although BMI
expected a negative impact on profitability at the respective plants. On
theupside, NatPet resumed operations at its Yanbu-based 400,000tpa PP
complex after completing ascheduled maintenance 11 days before the 60-day
turnaround was due to be completed. The scheduled maintenance aimed to increase
the operational rate of the complex, which was started in August 2010 but
experienced two shutdowns in H111 due to technical problems and power outages,
causing losses of more than US$11mn.